Abstract

Ensuring the effectiveness of the economic incentive mechanism is impossible without the development and adoption of an appropriate procedure that will determine the organizational principles, conditions and grounds for economic incentives for rational and environmentally friendly land use. This procedure should, inter alia, contain clearly defined criteria for economic incentives, principles, tools and sources of funding. As for the incentives established by the relevant regulations, they do not have the proper economic impact. There is a need to develop such a mechanism. It should be based on the provision of state budget funds on a reciprocal basis free of charge or partially paid to the relevant entities for the implementation of measures in accordance with land use and protection programs. The legislator calls the fact of land degradation the condition of providing funds not due to the fault of the entities carrying out improvements, but only the restoration of land as the purpose of the funds. It seems that it would be more appropriate to consolidate the possibility of stimulating any deterioration of land, including those whose condition was deteriorating through no fault of land users. Unfortunately, the existing regulations on land conservation do not regulate the principles of compensation, and the laws on the State Budget traditionally do not provide for the allocation of funds for such compensation. It should be emphasized that the mechanism of land conservation and its component - compensation for reduced incomes of landowners and land users - can work only if there is a financial basis – the funds provided in the budget.The article considers the peculiarities of land use and problematic issues regarding the circulation of quantity and quality of lands of Ukraine. The mechanisms of interaction of components of different types of land use that are directly related to all other business systems in which rapid economic growth, taking into account the needs and interests of the population coincide with the principles of preservation and restoration of the environment, including land resources. The increase of the average annual income from the use of land for its intended purpose is calculated in accordance with the damage caused in violation of land legislation. The existing measures of stimulation of rational land use in accordance with the current normative-legal base and components of the economic mechanism of stimulation of rational land use are analyzed and substantiated.

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